Initial Jobless Claims Plummet, But Lingering Concerns Loom
In the week ending November 18, initial unemployment claims dropped by 24,000 to 209,000, marking the largest decline since June, according to data from the Department of Labor.
The decline in initial claims is a result of atypical worker retention leading up to Thanksgiving, indicating that employers are holding onto employees in a labor market that is gradually cooling.
Continuing claims decreased to 1.84 million in the week ending November 11, the first decline since early September.
However, on an unadjusted basis, initial claims reached the highest level since July, with California, Oregon, and Kentucky leading the increase, while unadjusted continuing claims saw their largest increase in four months.
In addition, the youth unemployment rate for 16- to 19-year-olds has increased from 9.2% in April to 13.2% in October, which may indicate broader labor market weakness in the coming months.
Source: Helios Quantitative Research, Bloomberg, Department of Labor